Lower prices boosted
Oahu home sales
13 percent

But real-estate agents say
there are fewer homes on the market

By Russ Lynch
Star-Bulletin

Lower prices boosted Oahu home sales in April but the Honolulu Board of Realtors said it expects prices to come up later this year as the inventory of unsold homes decreases.

Last month, 156 single-family homes changed hands on Oahu, a 13 percent increase in sales from the April 1996 level of 138 homes. Condominium sales were up 8.7 percent at 187 last month compared with 172 in the previous April.

The median single-family home price dropped 17.7 percent to $279,000 from the April 1996 $339,000 median, the point where half the homes sold for less and half for more.

The median among condominium units last month was $160,000, down 8.6 percent from $175,000 in the year-earlier month.

The 4,100-member real estate trade association monitors resales of existing homes recorded through its Multiple Listing Service.

It does not count new homes or condominiums which also have unsold inventory problems.

Developers have been trying to boost sales of new homes through incentive plans such as zero down payment and free improvements on basic plans.

The sales action in April has reduced inventory among previously owned homes when compared with April 1996 by 3.7 percent for single-family homes and 11.3 percent for condominium units, the association said.

"The number of resales reported in April shows a strong comeback for the Oahu housing market," said C. Scott Bradley, board president.

"Lower prices clearly played a significant role in generating the increase in sales."

"The pace of sales traditionally increases in summer months. We expect, as inventory decreases at these increased sales levels, that prices should firm up."